NasdaqGS:PRAA

Stock Analysis Report

Executive Summary

PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas and Europe.

Snowflake

Fundamentals

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has PRA Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.3%

NasdaqGS:PRAA

-2.3%

US Consumer Finance

-1.0%

US Market


1 Year Return

-9.3%

NasdaqGS:PRAA

5.0%

US Consumer Finance

-0.4%

US Market

PRAA underperformed the Consumer Finance industry which returned 3.4% over the past year.

PRAA underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

PRAAIndustryMarket
7 Day3.3%-2.3%-1.0%
30 Day20.6%-3.3%-3.3%
90 Day16.4%0.3%0.4%
1 Year-9.3%-9.3%6.7%5.0%1.8%-0.4%
3 Year16.6%16.6%60.9%53.5%39.4%30.4%
5 Year-41.8%-41.8%40.4%30.4%54.2%37.1%

Price Volatility Vs. Market

How volatile is PRA Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PRA Group undervalued based on future cash flows and its price relative to the stock market?

25.95x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

PRA Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

PRA Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

PRA Group is overvalued based on earnings compared to the US Consumer Finance industry average.

PRA Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

PRA Group is good value based on expected growth next year.


Price Based on Value of Assets

PRA Group is overvalued based on assets compared to the US Consumer Finance industry average.


Next Steps

Future Growth

How is PRA Group expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

27.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PRA Group's revenue is expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).

PRA Group's earnings are expected to grow significantly at over 20% yearly.

PRA Group's revenue growth is expected to exceed the United States of America market average.

PRA Group's earnings growth is expected to exceed the United States of America market average.

PRA Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

PRA Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has PRA Group performed over the past 5 years?

-17.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PRA Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

PRA Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

PRA Group's 1-year earnings growth is negative, it can't be compared to the US Consumer Finance industry average.


Return on Equity

PRA Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

PRA Group used its assets less efficiently than the US Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

PRA Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is PRA Group's financial position?


Financial Position Analysis

PRA Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

PRA Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

PRA Group's level of debt (228.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (48.2% vs 228.1% today).

Debt is not well covered by operating cash flow (3.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

What is PRA Group's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate PRA Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate PRA Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as PRA Group has not reported any payouts.

Unable to verify if PRA Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as PRA Group has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of PRA Group's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Kevin Stevenson (54yo)

2.2yrs

Tenure

US$3,920,953

Compensation

Mr. Kevin P. Stevenson co-founded PRA Group, Inc. (Formerly known as Portfolio Recovery Associates, Inc.) in 1996 and has been its President since August 2016 and Chief Executive Officer since June 1, 2017 ...


CEO Compensation Analysis

Kevin's remuneration is about average for companies of similar size in United States of America.

Kevin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.6yrs

Average Tenure

53.5yo

Average Age

The tenure for the PRA Group management team is about average.


Board Age and Tenure

5.1yrs

Average Tenure

59.5yo

Average Age

The tenure for the PRA Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$4,475,37422 Aug 18
Ubon Partners AS
EntityCompany
Shares119,624
Max PriceUS$37.50

Ownership Breakdown


Management Team

  • Steve Roberts (57yo)

    Executive Vice President of Europe & Corporate Development

    • Tenure: 1.6yrs
    • Compensation: $1.78m
  • Deborah Cassidy (61yo)

    Chief Information Officer & Senior VP

    • Tenure: 4.3yrs
  • Chris Burroughs

    Chief Technology Officer

    • Tenure: 3.3yrs
  • Chris Lagow (45yo)

    Senior VP

    • Tenure: 3.6yrs
    • Compensation: $1.21m
  • Pete Graham (53yo)

    Executive VP & CFO

    • Tenure: 3.0yrs
    • Compensation: $1.82m
  • Kevin Stevenson (54yo)

    Founder

    • Tenure: 2.2yrs
    • Compensation: $3.92m
  • Darby Schoenfeld

    Vice President of Investor Relations

  • Laura White (48yo)

    Chief Compliance Officer

    • Tenure: 5.3yrs
  • Steve Fredrickson (59yo)

    Executive Chairman

    • Tenure: 23.6yrs
    • Compensation: $2.99m
  • Chris Graves (50yo)

    Executive Vice President of Americas Core

    • Tenure: 13.6yrs
    • Compensation: $1.82m

Board Members

  • John Fain (70yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: $211.84k
  • Lance Weaver (64yo)

    Lead Director

    • Tenure: 1.6yrs
    • Compensation: $221.53k
  • Scott Tabakin (60yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: $218.09k
  • Vik Atal (63yo)

    Independent Director

    • Tenure: 4.0yrs
    • Compensation: $221.22k
  • Geir Olsen (46yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: $192.47k
  • Kevin Stevenson (54yo)

    Founder

    • Tenure: 4.0yrs
    • Compensation: $3.92m
  • Jim Nussle (58yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: $206.22k
  • Marge Connelly (57yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: $189.97k
  • Steve Fredrickson (59yo)

    Executive Chairman

    • Tenure: 17.4yrs
    • Compensation: $2.99m
  • Penny Kyle (71yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: $206.22k

Company Information

PRA Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PRA Group, Inc.
  • Ticker: PRAA
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: consumer finance
  • Sector: diversified financials
  • Market Cap: US$1.526b
  • Shares outstanding: 45.41m
  • Website: Click here

Number of Employees


Location

  • PRA Group, Inc.
  • 120 Corporate Boulevard
  • Norfolk
  • Virginia
  • 23502
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRAANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2002
POV1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2002

Biography

PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas and Europe. It is involved in the acquis ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/16 23:46
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.